Three Major European Parliament Groups Reach Deal: 2035 ICE Vehicle Ban May Be Significantly Relaxed
nashnova research
The European Parliament's three largest blocs have agreed to cut the 2035 car-emission target from 100% to 87.5%, with the remainder offset by green steel — meaning combustion-engine cars can keep selling past the deadline.
What exactly changed in the deal?
The centre-right European People's Party, centre-left Socialists, and liberal Renew Europe agreed: from 2035, new-car emissions need only fall by 87.5%, not the original 100%.
The remaining 7.5% can be offset by using green steel — steel produced with renewable energy.
This means → new cars no longer need to be climate-neutral from 2035. Combustion-engine vehicles can keep selling past the cutoff, effectively ending the planned de-facto ban.
How does this differ from last week's Franco-German plan?
The Franco-German bilateral framework demanded a 90% cut with no offset mechanism — a higher bar and stricter rules.
The Parliament version drops to 87.5% and permits green-steel offsets, giving carmakers an additional way out.
In plain terms = the Franco-German plan said "every gram of reduction must be real"; the Parliament version allows "borrowing green credits from elsewhere to fill the gap."
How are carmakers and the clean-energy camp reacting?
BMW, Stellantis, and Volkswagen are the direct beneficiaries — traditional powertrains retain market space.
The three blocs also agreed on greater flexibility for EV "super-credits" — a scoring mechanism that rewards carmakers for selling more electric vehicles — and on loosening van regulations.
But the renewable-fuels industry pushed back: ePURE Secretary-General Laurent Donceel called the post-2030 renewable-fuel-only operating clause too restrictive, dismissing it as "window dressing."
What does this mean for the EV race?
Critics warn that weakening climate targets could leave Europe falling further behind China in electrification.
This reflects a core tension inside Europe — protecting legacy-automaker jobs versus accelerating the green transition.
The Parliament and member states must each finalize positions before entering trilogue negotiations; the final outcome is not settled. This means → the current deal is only a starting point, and the endgame could still shift significantly.
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